Right of First Refusal "legalese"

ikanoi

Hi all, thanks in advance. I am trying to make sense of the RoFR notice our building has recieved. If anyone could help me by dumbing down the following paragraphs, it would be super helpful (spelling errors will be mine!). 

4.2 The proposed disposal will provide that the Landlord will be entitled prior to completion and without the consent of the buyer to grant leases of premises in the Property and to enter into any deeds and documents necessary in conjunction with and for the benefit of the use and occupation of the Property, as well as to enter into any deeds and documents necessary to vary any leases granted out of the Property.
5 It is intended that the proposed disposal will be subject to your lease of the Flat, the other subsisting leases of the constituent flats, the other leases granted out of the Property prior to the date hereof and any leases granted pursuant to paragraph 4.2 above.
6 It is a condition of the sale that the Landlord may require the buyer to grant back to the Landlord on completion leases of any unsold dwellings at the Property. The leases will be in similar form to leases granted in respect of the dwellings at the Property as at the date hereof, subject such amendments as the Landlord may require.
7 This disposal is also to be subject to:

•  All of the matters other than any financial charges listed or referred to on freehold title

• All overriding interests

• All Local Land Charges etc

• The leases granted out of the Landlord's interest

There are still several unsold units in our property. I interpret this to mean that the developer will continue to sell them on, at whichever terms they choose (though similar to existing). After they're sold I assume the freehold would rest with us (if we purchase it) and the leasehold would become the responsibility of the new, hypothetical tenants? I also interpret this to mean that they unsold units are not included when trying to define the amount of "qualifying tenants" needed to accept the offer? And that a "qualifying tenant" means a household, not the number of individuals in a household? Therefore if we have 10 units, 3 still unsold, we only need 4 units to opt in?

Norman_Castle

First refusal to buy the freehold? Wouldn't the unsold units which are still owned by the developer give them qualifying tenant status for each unit?

ikanoi

Norman_Castle said:

First refusal to buy the freehold? Wouldn't the unsold units which are still owned by the developer give them qualifying tenant status for each unit?

To buy the freehold - correct. I hadn't considered this but I believe you are no longer a qualifying tenant if you own 3 or more units so we may be okay there.

princeofpounds

ikanoi said:

Hi all, thanks in advance. I am trying to make sense of the RoFR notice our building has recieved. If anyone could help me by dumbing down the following paragraphs, it would be super helpful (spelling errors will be mine!). 

4.2 The proposed disposal will provide that the Landlord will be entitled prior to completion and without the consent of the buyer to grant leases of premises in the Property and to enter into any deeds and documents necessary in conjunction with and for the benefit of the use and occupation of the Property, as well as to enter into any deeds and documents necessary to vary any leases granted out of the Property.
5 It is intended that the proposed disposal will be subject to your lease of the Flat, the other subsisting leases of the constituent flats, the other leases granted out of the Property prior to the date hereof and any leases granted pursuant to paragraph 4.2 above.
6 It is a condition of the sale that the Landlord may require the buyer to grant back to the Landlord on completion leases of any unsold dwellings at the Property. The leases will be in similar form to leases granted in respect of the dwellings at the Property as at the date hereof, subject such amendments as the Landlord may require.
7 This disposal is also to be subject to:

•  All of the matters other than any financial charges listed or referred to on freehold title

• All overriding interests

• All Local Land Charges etc

• The leases granted out of the Landlord's interest

There are still several unsold units in our property. I interpret this to mean that the developer will continue to sell them on, at whichever terms they choose (though similar to existing). After they're sold I assume the freehold would rest with us (if we purchase it) and the leasehold would become the responsibility of the new, hypothetical tenants? I also interpret this to mean that they unsold units are not included when trying to define the amount of "qualifying tenants" needed to accept the offer? And that a "qualifying tenant" means a household, not the number of individuals in a household? Therefore if we have 10 units, 3 still unsold, we only need 4 units to opt in?

4.2 - we can do anything we like with the leases of the properties before you buy the freehold (if you choose to do so). It basically gives them freedom to act so they can do things like sell unsold leasehold properties.

6. This basically says you aren't buying the freehold plus the unsold leasehold properties. You are buying the freehold only, and the leasehold properties will have to remain with the developer.

5 & 7. This is basically saying that the freehold is subject to all sorts of arrangements - not least the leaseholds that have been given out from it - and any sale of it will have to respect those arrangements.

You can get a sense of what counts as a qualifying tenant here:

https://www.lease-advice.org/advice-guide/ce-getting-started/

And LAS generally will advise you further if you make an appointment with them (they are govt-funded).

The primary legislation is here:

https://www.legislation.gov.uk/ukpga/1993/28/contents

eddddy

princeofpounds said:

You can get a sense of what counts as a qualifying tenant here:
https://www.lease-advice.org/advice-guide/ce-getting-started/
And LAS generally will advise you further if you make an appointment with them (they are govt-funded).
The primary legislation is here:
https://www.legislation.gov.uk/ukpga/1993/28/contents

Just a clarification - the OP is talking about Right of First Refusal - not collective enfranchisement. So it's a different piece of legislation that applies.

Here's the advice from LEASE: https://www.lease-advice.org/advice-guide/right-first-refusal/

And here's the legislation: https://www.legislation.gov.uk/ukpga/1987/31/contents
And : https://www.legislation.gov.uk/ukpga/1996/52/contents   (Part III Landlord and Tenant)

princeofpounds

eddddy said:

princeofpounds said:

You can get a sense of what counts as a qualifying tenant here:
https://www.lease-advice.org/advice-guide/ce-getting-started/
And LAS generally will advise you further if you make an appointment with them (they are govt-funded).
The primary legislation is here:
https://www.legislation.gov.uk/ukpga/1993/28/contents

Just a clarification - the OP is talking about Right of First Refusal - not collective enfranchisement. So it's a different piece of legislation that applies.

Here's the advice from LEASE: https://www.lease-advice.org/advice-guide/right-first-refusal/

And here's the legislation: https://www.legislation.gov.uk/ukpga/1987/31/contents
And : https://www.legislation.gov.uk/ukpga/1996/52/contents   (Part III Landlord and Tenant)

Thanks, you're right and that's useful to know.